Canfor to Close Quesnel Sawmill, Exchange Forest Tenure Rights with West Fraser

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Canfor Corp., Vancouver, B.C., Canada, this past week announced that it will permanently close its sawmill in Quesnel, B.C., Canada. The company anticipates that the closure will occur in March of 2014. Canfor’s 209 Quesnel-based employees will be offered positions elsewhere in the company.

Canfor also has entered into an agreement with West Fraser Mills Ltd. for an exchange in forest tenure rights. Canfor is exchanging 382,194 cubic meters of replaceable forest license allowable annual cut in the Quesnel Timber Supply Area as well as 53,627 cubic meters of replaceable forest license allowable annual cut in the Lakes Timber Supply Area with West Fraser in exchange for receiving 324,500 cubic meters of replaceable forest license allowable annual cut in the Morice Timber Supply Area. The companies are also exchanging non-replaceable licenses and undercut volumes.

"The timber availability in the Quesnel region following the mountain pine beetle infestation unfortunately leaves us unable to continue operations of our Quesnel sawmill," said Don Kayne, president and CEO of Canfor Corp. "The additional fiber we have been able to secure in the exchange agreement with West Fraser enhances the fiber requirements for our Houston facility. We are committed to minimizing the impacts of this closure on our Quesnel employees."

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